2020 (2) TMI 374

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....ermined under Section 129 of the Uttar Pradesh Goods and Services Tax Act, 2017 at the time of seizure of goods and conveyance in transit. 3. It is a subsequent development, which this Court has taken into cognizance for a just adjudication of the controversy. The order dated 4th December, 2019 has been passed in purported compliance of the judgment of the Hon'ble Supreme Court rendered in the State of Uttar Pradesh and others Vs. M/s Kay Pan Fragrance Pvt. Ltd reported in [2019] 71 NTNDX 409 (SC). The operative portion of the said judgment rendered by the Hon'ble Supreme Court is set forth hereunder: "In our opinion, therefore, the orders passed by the High Court which are contrary to the stated provisions shall not be ....

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....f the applicable tax and penalty equal to one hundred per cent of the tax payable on such goods and, in case of exempted goods, on payment of an amount equal to two per cent. of the value of goods or twenty-five thousand rupees, whichever is less, where the owner of the goods comes forward for payment of such tax and penalty; (b) on payment of the applicable tax and penalty equal to the fifty per cent. of the value of the goods reduced by the tax amount paid thereon and, in case of exempted goods, on payment of an amount equal to five per cent. of the value of goods or twenty five thousand rupees, whichever is less, where the owner of the goods does not come forward for payment of such tax and penalty; (c) upon furnishing ....

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....er officer." 5. A perusal of the provision shows that upon seizure of goods and conveyances in transit, the Revenue shall issue a notice specifying the tax and penalty liable to be paid by the assessee and pass an order for payment and tax and penalty in the manner provided under Clause (a) or Clause (b) or Clause (c) of Section 129(1) of the UPGST Act, 2017. The provision envisages payment of the applicable tax and penalty or furnishing security equivalent to the amount payable. The goods and conveyances are liable to be released immediately upon payment of such amount or furnishing security of equivalent amount. Further, upon payment of amount or furnishing of security referred to Section 129(1) of the UPGST Act, 2017, the proceedings ....

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....s of the case will now be construed in the light of the above said provisions of the Act. The facts themselves lie in a narrow compass. 9. It is admitted by the State Revenue that the petitioner had furnished a security in the form of a bank guarantee, equivalent to the amount payable under clause (a) of section 129(1) of the UPGST Act, 2017, upon demand made by the Revenue to furnish such security of like amount. The security in the form of a bank guarantee so furnished upon demand to the satisfaction of the State Revenue Authorities is clearly relatable to Section 129 (1)(c) of the UPGST Act, 2017. 10. The order dated 4th December, 2019 issued by the Assistant Commissioner (Incharge) Commercial Tax, Mobile Squad Mughalsarai Unit, Ch....

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....e State Revenue Authorities and its invocation shall be subject to the result of the adjudication. 16. The writ petition is finally disposed of accordingly. ============= Document 1 "मा0 उच्चतम न्यायालय के उक्त संदर्भित निर्णय के अनुपालन हेतु आपको सूचित करते हुए निर्देशित किया जाता है कि ....